Vedanta Resources Holdings Limited has lost an application in which they wanted the Lusaka High Court to join them to the proceedings in the matter in which ZCCM-Investments Holdings PLC is seeking an order that Konkola Copper Mines (KCM) be liquidated because it is insolvent.
According to their application for an ex-parte for joinder which they filed in the High Court registry, Vedanta submitted that if it is not joined to the proceedings, it stands to suffer great prejudice as it has over 79 per cent shares in the mining company.
But judge Annesi Banda-Bobo, in her ruling delivered on June 20, 2019, has refused to join the mining company to the proceedings because there is no such procedure under the winding up rules.
Judge Banda-Bobo has further ruled that a non-party who has an interest in winding up proceedings is required to file a notice of intention to be heard on the winding-up petition and only then can such be heard on any application before or during the hearing of the actual petition as opposed to commencing an action through a writ of summons.
In the application, the Company’s representative Hermien Uys explained that ZCCM-IH and Vedanta are KCM shareholders.
Uys stated that he was aware that President Edgar Lungu had assumed the responsibility of a provisional liquidator.
He stated that Vedanta had invested millions of dollars in KCM with a view to realising a return on the investment over a period of time and that it was therefore within Vedanta’s interest that KCM should continue as a going concern.
Uys further stated that as as a majority shareholder in KCM, Vedanta would have suffered a great prejudice if the court ordered that the mining company be wound up without hearing it.
On May 21, the petitioner filed a petition, seeking an order to wind up KCM and asked the Court to appoint Lusaka lawyer Milingo Lungu to be a provisional liquidator.